Marketing Research

What is a marketing research?

Marketing research: process of designing, gathering, analyzing and reporting information
that may be used to solve a specific marketing problem. Defining marketing opportunities and problems Generating and evaluating marketing ideas Monitoring performance Understanding the marketing process Information must be objective, accurate and balanced so that managers can make the right decisions.

The process:
1. Determine the problem and objective 2. Develop the research plan (data source and type and research method) 3. Gather information 4. Analyze the information 5. Present findings 6. Make a decision

Data types
Primary data: Information collected specifically for the problem at hand Secondary data: Information already collected
Less expensive than primary Sometimes primary data is impossible to collect But is the data really relevant to the problem? (Using both is also an alternative)

Quantitative & qualitative research methods

Qualitative research of primary data Quantitative research of primary data

In depth interview Focus groups Observation

Observation (P or M) Survery research Experiment INSEE Existing research Nielsen panel data

Press release Internet information Etc.

Qualitative research of secondary data

Quantitative research of secondary data

Observation methods
Personal observation: Researcher observes actual behavior as it occurs
The observer does not attempt to manipulate the phenomenon being observed but merely records what takes place

Mechanical observation: Some require respondents direct participation, while some dont
AC Nielsen people meter, online campaign ratings, on-site cameras, optical scanners in supermarkets Eye-tracking monitors, pupilometers, psychovalnometers, devices measuring response latency

Physiological observation: Galvanic Skin response and neuro-marketing via MRI

Survey research
While a buyer survey is used to determine perceptions and intentions to buy a sales force survey is used to determine sales force adoption. A survey can either be done in-store or via an on-going consumer panel run by a company or a competitor. Surveys must not be used too much, or customers will be annoyed. Small incentives are a good way to get customers to answer a survey. Note that survey answers may and will be inaccurate. People lie.

Experiments
Designed to capture cause-to-effect while eliminating competing explanations of the observed findings. 1. 2. 3. 4. 5. Select matching groups of subjects Present them with different treatments Control that they were indeed under different conditions Verify whether there exists a difference between the groups Always debrief

Focus group
Focus group interview: unstructured, free-flowing interview with a small group of people,
usually between 6 and 10

Why?
Determine feelings, perceptions and manner of thinking regarding products. Common topics include employee programs, brand meanings, problems with products, advertising themes or new product concepts.

Procedure:
1. Warm up Explain focus groups, hear from everyone, associates watching from behind a mirror, audiotapes instead of notes, one person talks at a time, no side discussions, no questions to the moderator, participants dont need to know much about the topic, different views in the group must be expressed, no one will contact participants after the session, take questions. 2. What comes to mind when this product concept is mentioned? Likes and dislikes, problems, changes you would like to see, how do you feel about the current brands available, what are your likes and dislikes about them, how would you change them, do you use more than one brand, which one, why, what factors are important in determining the brands you use 3. Present a description of the new product concept and ask how the group feels about it How many of you would consider using this product, why, what do you like or dislike about it, do you see any distinct advantages over current brands, how would you expect this product to be priced 4. Give them the opportunity for final questions and comments 5. Thank them for their cooperation

Forecasting and demand measurements

Statistical methods Analogy
how did similar product do in the past?

Judgment (expert opinion) Market-test method

Real-life observations when buyers dont really plan their purchase or experts unavailable or unreliable

The key to good forecasting is to make explicit assumptions and to use multiple methods to see if the results converge.